Obama says top tax rates could drop in 2013

Washington, Dec. 5: President Barack Obama has said that he would consider lowering top tax rates as part of a wider reform of the tax code in 2013.

Speaking to Bloomberg Television in his first interview after election, Obama suggested that tax rates for the wealthy could come down as early as 2013 if politicians agreed to comprehensive tax reform.

“It’s possible that we may be able to lower rates by broadening the base at that point,” Obama said.

According to the BBC, but he insisted rates must rise now as part of an agreement to avoid the so-called ‘fiscal cliff’.

“We have the potential of getting a deal done,” he said, adding: “We’re going to have to see the rates on the top 2% go up, and we’re not going to be able to get a deal without it.”

On Monday, Republicans put forward a proposal that was swiftly dismissed by the White House.

It called for increased tax revenue of 800 billion dollars over a decade, but would keep current tax cuts in place, including those for wealthier earners, the report said.

The offer did not specify how the new revenue would be found.

According to the report, the proposal also suggested raising the eligibility age for Medicare, a government-sponsored health programme for senior citizens, and changing the way the Social Security pension scheme makes inflation adjustments.

Obama’s plan, put forward last week, called for 1.6 trillion dollars in new revenue. The White House has said it does not believe simply closing loopholes would raise sufficient revenue, the report added. (ANI)